Historical Newspapers of South Carolina

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Focus on Benefits Medical cost will continue to soar We can expect another round of double digit increases in our health care cost next year, according to Vice President Claude A. Crocker. Just a few weeks ago it seemed that every newspaper, news broadcast, or magazine had something to say about run away inflation in health care costs. Then, for a short period of time, the rate at which medical care costs were increasing slowed somewhat. However, for the past 18 months medical costs have again started a rapid upward climb that will affect all us. In fact, health care charges today are increasing at a much faster rate than inflation, the gross national product and other price indexes, Crocker said. Clinton is "self-insured" for medical and dental costs. This means that in place of paying an insurance company a higher pre mium to pay claims and provide re lated services, Clinton reim burses the administrator, (Provident) for claims actually paid plus a smaller fee for these services. This method is more economical than any other Clinton has found to date. As you know, Clinton's commitment is to share equally these costs with us, as employees. So when our share through payroll deduc tions is less than one half the expenses, our contribu tions must be adjusted up ward to the equal partici pation level. In the past, we have ad justed em ployee contri butions retro spectively, but this has caused an immediate erosion in our target to share medical cost equally with our employees. For this reason, we are going to need to look forward in adjusting employee contributions in the future. Tocitean example, for June, July, August and September of this year, our claims plus administration fees totaled $1,260,639. Our deductions, as employees, for this same period of time were $458,432—only 36.4% of this cost. This fact plus projections by most major insurance companies that medical and dental costs will continue to increase at a 21 to 24% annual pace .clearly indicates we can expect our costs to increase in 1990. It is anticipated that our medical-benefit costs will increase by $1,105,532, and dental claims are expected to be up to $27,051 for calendar year 1990. About your group insurance By Truman Owens In an effort to contain our health care administrative costs, it is neces sary that we follow our procedure for handling Prescription Drugs and Doctor's Office Visit claims. PROVIDENT makes a charge to us for each claim processed, regardless of the amount of benefit payment and even if there is no benefit payment. In some instances the cost of an Explanation of Benefit Statement (EOB) equals or exceeds the amount of a small claim. Please follow these procedures for filing claims: •Claims should not be submitted for Prescription Drugs or Doctor's Office Visits until the $200 deductible has been satisfied. If a claim(s) are received and the $200 deductible has not been satisfied they will be returned to you, the insured. •Once the $200 deductible has been satisfied, additional claims can be submitted, but only when they exceed $200. Claims not meeting this requirement will be returned to you. •Claims that do not exceed $50 can be filed at the end of each calendar quarter (March, June, September, December). • If your spouse is employed with another company and his/her group plan pays as primary on him/her or pays primary on a covered depend ent child, you will be required to submit a copy of the primary carrier's Explanation of Benefits (EOB) along with the claim in order for PROVI DENT to coordinate your benefits with his/her benefits. As customary, the following types of expenses should be filed imme diately by you or the provider of the service. •Claims for treatment of a non-occupational injury. •Claims for out-patient diagnostic laboratory and x-ray examinations (DXL). •Claims for pre-admission testing (PAT) •Claims for second surgical opinion. •Claims for surgery performed on an out-patient basis. •Claims for any medical expenses for which you have authorized pay ment directly to the hospital or doctor. If you have any questions or desire any additional information regard ing the subject, please feel free to call Mr. Truman Owens in the Person nel Office. In Geneva, please contact Bob Dettmar, and EFA, contact Mrs. Shirley Weeks. Christmas pay given out Clinton Mills has again approved Christmas vacation pay this year for those eligible employees with continuous service since December 1,1986 or longer. For Christmas vacation pay, eligible employees with three to five years service received one percent of gross earnings; those with five to ten years received two percent; and ten and over, three percent. These amounts were in addition to vacation pay distributed prior to July 4th. All vacation pay checks were paid on regular pay day, December 15. Clinton's 1080 eligible employees shared in $445,374.51 and Geneva's 402 received $130,188.33. The Christmas vacation pay is in addition to the $504,092.72 that 1368 Clinton employees shared and the $134,551.69 distributed to Geneva employees in July. When added together, eligible employees received over $1,214,205 in holiday pay during 1989. This was in addition to seven paid holidays and other benefits paid to eligible employees by the Company. Notices have been posted throughout the plants giving the holiday work schedule. Clinton Mills wishes all employees a happy and enjoyable holiday season. Getting paid while away from Clinton Mills provides a reasonable amount of time off with pay when there is a death in the employee's immediate family. In the event of a covered death, employees may be eligible for up to three days pay. Immediate family includes husband, wife, father, mother, grandmother, grandfather, son, daughter, grandson, granddaughter, brother, sister, mother-in-law, or father-in-law. In order to be eligible for death- in-family pay, the employee must your work attend the funeral unless he is incapacitated due to medical reasons connected with the death. Pay will only include those days that occur when the employee is scheduled to work. Hours paid for death-in-family are excluded from overtime calculations and any applicable shift premium. Anyone desiring additional information relative to the death- in-family policy should contact their Personnel Director. 7 ClothMaker